Mis Chapter 3 Test Questions – Flashcards
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Which of the following is not one of the competitive forces in Porter's model?
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External environment
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A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces?
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New market entrants
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Which of the following industries has the lowest barrier to entry?
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Small retailer
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All of the following could be considered substitute products for industrial electricity generation except:
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Ethanol
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Which of the following can force a business and its competitors to compete on price alone?
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Transparent marketplace
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A firm can exercise greater control over its suppliers by having:
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more suppliers.
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Which of the following is not one of the four basic strategies a company can employ to deal with competitive forces?
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Compete on employee loyalty
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Walmart's continuous replenishment system allows it to do all of the following except:
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provide mass customization.
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Which of the following illustrates the use of information systems to achieve product differentiation?
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A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers
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Which of the following illustrates the use of information systems to strengthen customer and supplier intimacy?
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A PC manufacturer's use of information systems to facilitate direct access from suppliers to production schedules
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Which of the following illustrates the use of information systems to focus on market niche?
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A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy
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When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy.
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market niche
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________ is the ability to offer individually tailored products or services using the same production resources as bulk production.
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Mass customization
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An information system can enable a company to focus on a market niche through:
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intensive customer data analysis.
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Hilton Hotels' use of customer information software to identify the most profitable customers to direct its services to is an example of using information systems to:
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focus on market niche.
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According to the chapter case, the Nike+ ecosystem is part of which of the following larger phenomena?
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The Internet of Things
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To what competitive force did the printed encyclopedia industry succumb?
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Substitute products or services
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Internet technology:
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makes it easy for rivals to compete on price alone.
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The Internet raises the bargaining power of customers most effectively by:
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making information available to everyone.
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The value chain model:
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helps a firm identify points at which information technology can most effectively enhance its competitive position.
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All of the following are considered primary activities of a firm except:
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procurement.
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The support activities of a firm include:
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organization infrastructure, human resources, technology, and procurement.
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Benchmarking:
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compares the efficiency and effectiveness of your business processes against strict standards.
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The most successful solutions or methods for achieving a business objective are called:
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best practices.
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Which of the following is not a true statement about value webs?
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Value webs are inflexible and cannot adapt quickly to changes in supply and demand.
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A ________ is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively.
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value web
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How are information systems used at the industry level to achieve strategic advantage?
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By building industry-wide, IT-supported consortia and symposia
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When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits, ________ are created.
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synergies
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An information system can enhance core competencies by:
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encouraging the sharing of knowledge across business units.
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The idea that the more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output, is referred to as:
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the law of diminishing returns.
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Which of the following statements about network economics is not true?
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In network economics, the marginal cost of adding new members to the network is higher than the marginal gain.
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In network economics, the value of a commercial software vendor's software products:
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increases as more people use them.
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A virtual company:
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is also known as a virtual organization.
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The emergence of software as a web service has acted as a disruptive technology for:
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traditional boxed software companies.
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Which of the following is not an advantage for new companies entering the marketplace?
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They can establish new relationships with suppliers.
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All of the following have been disruptive technologies except:
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minicomputers.
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A firm can be said to have competitive advantage when it has access to resources that others do not.
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True
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The power of customers is one of the competitive forces that affect an organization's ability to compete.
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True
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In a transparent marketplace, there is high product differentiation.
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False
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Studies show that less than one-quarter of a business firm's profits can be explained by alignment of IT with business.
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False
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Product differentiation is one of the four basic competitive strategies.
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True
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Strong linkages to customers and suppliers decrease switching costs.
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False
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The effect of the Internet has been to increase a company's bargaining power vis-à-vis its suppliers.
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True
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The Internet has intensified competitive rivalry.
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True
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In the value chain model, primary activities are those that are most directly related to the production and distribution of the firm's products and services.
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True
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The value chain model classifies all company activities as either primary or support.
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True
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When the output of some units can be used as inputs to other units, synergies develop, which can lower cost and generate profits.
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True
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The inventors of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.
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False
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A value web is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market.
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True
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The activities that measure the performance of your business processes against strict standards are called best practices.
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False
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The ________ strategy concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries.
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multinational
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The ________ strategy is characterized by heavy centralization of corporate activities in the home country of origin.
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domestic exporter
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In a ________ system configuration, separate information systems are designed and managed by each foreign unit.
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Decentralized
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A firm that locates all systems development and operations at its headquarters is using a ________ system configuration.
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Centralized
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________ typically develop a single information system, usually at the home base, and then replicate it around the world.
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Franchisers
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Caterpillar Corporation is example of which of the following?
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Domestic exporter
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Which of the following is pursuing a transnational strategy?
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Nestlé
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Franchisers are firms that have their product created, designed, financed, and initially produced in the home country but rely heavily on foreign personnel for further production, marketing, and human resources.
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True
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________ systems are those in which development occurs at the home base, but operations are handed over to autonomous units in foreign locations.
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Duplicated
